Avon, the largest direct seller of cosmetics in the world, posted stronger sales growth than expected for first-quarter 2006, due largely to some strong product introductions.
Total revenue at New York-based Avon was $2.0 billion for the quarter, up 6% from $1.9 billion for the same quarter last year. Overall profit declined to $56.2 million from $172 million in Q1 2005. That decrease included costs related to restructuring the business: Avon is in the midst of a previously-announced multi-year reorganization in which it will cut jobs, increase marketing by 50% and take other steps to improve results.
The company increased advertising spending by 57% in the quarter to $40 million.
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